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Home Equity Loans

How to get a HELOC on a second home: Lenders and requirements

Jul 15, 2026

Written by

Reviewed by

Christy Bieber

Key takeaways:

You could get a home equity line of credit (HELOC) on a second home, though requirements are typically stricter than for a primary residence.
Expect higher credit score thresholds, lower combined loan-to-value (CLTV) limits, and rates that could run higher.
Many lenders cap the CLTV ratio at 80% or lower for a second-home HELOC, compared to 80–90% for a primary residence.
Not every lender offers HELOCs on second homes, so comparing multiple lenders is essential.

When you own a second home or vacation property, the equity you've built could be a valuable financial resource. Borrowing against it lets you put that value to work without selling the property or touching your first mortgage.

You could get a home equity line of credit (HELOC) on a second home. The requirements are typically stricter than they are for a primary residence, and not every lender offers this option. Knowing what lenders look for, and which ones serve this market, puts you a step ahead before you apply.

This guide reviews the qualification rules, the lenders that work with second homes, current rate expectations, and the steps to apply.

Can you get a HELOC on a second home?

Many lenders offer a home equity line of credit secured by a second home or vacation property. The pool of lenders is smaller than it is for primary residences.

One distinction matters upfront. The focus of this guide is getting a HELOC where your second home is the collateral. That's different from using a HELOC on your primary home to buy another property, which has its own considerations.

A HELOC is a second mortgage. When you take out a HELOC on your second home, that property is the collateral. If you don't repay the loan, you could lose the home.

It also helps to know that a "second home" and an "investment property" are separate classifications in lending. Investment property HELOCs are rare, and the rules below apply to second homes you use personally, not rentals.

HELOC on a second home vs. primary residence: How requirements differ

Lenders typically treat second homes as carrying more risk than primary residences. Borrowers are more likely to stop paying on a vacation home than on the place they live when money gets tight, so lenders generally ask for stronger credit and more equity on second-home HELOCs.

Here's how typical requirements compare.

Requirement	Primary residence	Second home
Credit score	620–680+	680–700+
Max CLTV	80–90%	80% or lower
DTI ratio	43%, sometimes higher	Up to 43%
Interest rates	Lower	Typically higher
Lender availability	Widely available	Fewer lenders

A HELOC on a second home is secondary to the primary mortgage on that property. If the home were ever sold to satisfy debts, the first mortgage would get paid before the HELOC.

Requirements to qualify for a HELOC on a second home

Lenders set their own rules, but most weigh the same core factors. Here's what to expect.

Credit score

Most lenders want a credit score of 680 to 700 or higher for a HELOC on a second home. That's a notch above the typical primary-residence minimum.

Home equity and CLTV limits

You typically need at least 20% equity in the second home to be considered. Most lenders cap the combined loan-to-value (CLTV) ratio at 80% or lower for second homes, which is stricter than the 80% to 90% typical for a primary residence.

CLTV adds your existing mortgage and the new line of credit together, then divides that total by the home's value. Here's an example:

Second home value: $350,000
Mortgage balance: $200,000
Equity: $150,000 (about 43%)
If the lender allows 80% CLTV: $350,000 × 0.80 = $280,000
Maximum HELOC: $280,000 − $200,000 = $80,000

You can estimate your own numbers with a HELOC payment calculator.

Debt-to-income ratio

Lenders typically want a debt-to-income (DTI) ratio of 43% or less. A HELOC does affect your DTI, so the new payment factors into the calculation.

Here's the part many borrowers overlook: The mortgage on your primary home, the mortgage on your second home, and the new HELOC payment all count toward your DTI. Add up the numbers before you apply to get a realistic picture of where you stand.

Property type and occupancy

The property must be classified as a second home for personal use, not an investment or rental property. Lenders verify this. If the home is primarily rented out, it could be classified as an investment property, which generally carries even stricter requirements. Many lenders do not offer HELOCs secured by investment properties.

Freddie Mac guidelines require a borrower to keep a second home available primarily, meaning more than half the calendar year, for personal use. A property tied to a rental pool or a management agreement that controls occupancy generally doesn't qualify as a second home. Keep documentation that demonstrates personal use.

Which lenders offer a HELOC on a second home?

Rather than a single list of names, it helps to understand the categories of lenders that serve this market. Availability and terms vary widely.

National banks. Some large banks offer second-home HELOCs. Their minimum requirements may run higher.
Credit unions. Some credit unions offer competitive terms to members. You'll usually need to qualify for membership first.
Online lenders. Some online mortgage lenders have expanded into second-home HELOCs.
Specialty lenders. Some lenders focus specifically on home equity products for non-primary residences.

Because not every lender offers this option, comparing several is especially valuable for a second-home HELOC.

Achieve Loans does not offer second home HELOCs.

How to use equity in a second home

A HELOC on a second home could fund a range of goals. Common uses include:

Renovations or improvements to the second home
Consolidating higher-interest debt
Funding a major expense, such as medical or education costs
Repairs or maintenance on either property

For a fuller list, read about ways to use a home equity loan.

Steps to apply for a HELOC on a second home

Check your credit score and review your credit report for errors.
Estimate your equity in the second home using recent comparable sales or an online estimator.
Calculate your DTI, including both mortgage payments.
Research lenders that offer HELOCs on second homes.
Prequalify with one or more lenders.
Submit your full application with the required documents.
Complete the property appraisal.
Review and sign your closing documents.

Pros and cons of a HELOC on a second home

Potential benefits	Potential drawbacks
Access equity in a property that might otherwise sit idle	Stricter qualification requirements than a primary residence HELOC
Could offer lower rates than unsecured options like credit cards	Fewer lenders offer this option
A fixed-rate HELOC provides predictable payments	Your second home is the collateral; if you don't repay the loan, you could lose the home
Interest might be tax-deductible in some cases	Rates are typically higher than primary residence HELOCs

HELOC interest is deductible only when the funds are used to buy, build, or substantially improve the home that secures the loan, and the loan must be secured by your main or second home. Rules vary by situation, so consult a tax professional about your circumstances.

For more on weighing the trade-offs, learn the pros and cons of a home equity loan.

Author Information

Written by

Kimberly Rotter

Kimberly is Achieve’s senior editor. She is a financial counselor accredited by the Association for Financial Counseling & Planning Education®, and a mortgage expert for The Motley Fool. She owns and manages a 350-writer content agency.

Reviewed by

Christy Bieber

Christy Bieber writes about personal finance and law. She has a JD from UCLA School of Law with a focus on business law, and a BA in English, Media & Communications from the University of Rochester, as well as a Certificate of Business Administration.

Home Equity Loans

Frequently asked questions about a HELOC on a second home

Yes. Many lenders offer a HELOC secured by a second home, though the requirements are typically stricter than they are for a primary residence. You'll typically need a credit score of 680 to 700 or higher, at least 20% equity, and a debt-to-income ratio of 43% or lower. Fewer lenders offer HELOCs on second homes.

Achieve Loans does not offer HELOCs on second homes.

Yes, you could take a HELOC on your primary residence and use those funds toward buying a second property. This strategy has its own requirements and trade-offs.

Essentially, you draw on the line of credit secured by your primary home and apply the funds toward the purchase, often as the down payment or full purchase price. Your primary home becomes the collateral for that borrowing, so if you don't repay the loan, you could lose it. Our guide on using a HELOC to buy another property covers the steps and considerations in detail.